Mortgage Rates Soar to 22-Year Highs, Raising Concerns

The US 30-year mortgage rate has climbed to 7.16%, matching the highest level since 2001, which is impacting both sales and refinancing activity. The rise in borrowing costs presents a challenge for the housing market, restraining demand and preventing homeowners with lower mortgage rates from listing their homes. The lack of homes for sale is pushing prices higher, squeezing affordability further. Higher rates could exacerbate inventory issues as owners face the prospect of giving up lower rates, potentially requiring builders to offer more incentives to attract buyers.